Consistent service – PSI

18 Jul 2016

56.7

June

-0.2

Monthly Change

expanding

slower rate

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Kirk Hope

Chief Executive, BusinessNZ

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New Zealand's services sector showed consistent levels of expansion during June, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for June was 56.7.  This was very close to the level of activity seen in May (56.9), and above the average of 56.4 for the first 6 months of the year (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Kirk Hope said that the result for June continued the trend of healthy expansion, with the sector remaining in a positive position.

"Looking at comments, those who stated their main influences on activity were positive typically mentioned either steady sales or business as usual.  Those stating negative influences instead focused on either seasonal patterns or issues relating to shortages of skilled staff".

Regarding the latest PSI result, BNZ Senior Economist Craig Ebert said "coming up through the pack was the PSI's employment index. At 55.1 it fits with a number of other indicators on hiring that are starting to look hefty for New Zealand."

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

The PSI

Much like the PMI did, the Performance of Services Index (PSI) exhibited resilience in June, with an index reading of 56.7. There was also accord in the fact the PSI indicated the fastest rate of expansion was occurring in the North Island.

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QSBO Services

One of the difficulties in monitoring the services sector is that there are very few general indicators on how it's all going. But one of those few is from the NZIER's Quarterly Survey of Business Opinion (QSBO).

Read more  

Retailers

Drilling down into the industry detail of the PSI, its retail trade category was one of the strongest. Its (unadjusted) index result of 57.8 for June brought its 3-month average up to 56.5, compared to 49.2 at the same stage a year ago.

Read more  

Housing/LVR

Despite slightly slower sales, price pressure in the NZ housing market remained clear in June's Real Estate Institute data. Problematic as this is, the RBNZ feels it has more important issues on its plate, namely trying to drive more inflation into the CPI.

Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Jun
2015
Feb
2016
Mar
2016
Apr
2016
May
2016
Jun
2016
BNZ - BusinessNZ PSI 56.756.855.157.856.956.7
Activity/Sales 60.460.159.863.160.258.1
Employment53.553.753.053.854.755.1
New Orders/Business60.761.157.461.360.058.3
Stocks/Inventories51.754.452.552.652.453.4
Supplier Deliveries54.453.351.354.552.455.2

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – June 2016

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
5 Jul 2016

51.3

International PSI

BNZ - BusinessNZ PCI

56.9

GDP-Weighted Index

57.2

Free-Weighted Index

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) saw the two options for measuring the PCI again experience differing directions of activity from May to June.

The June GDP-Weighted Index (56.9) remained unchanged from May, while the Free-Weighted Index (57.2) decreased 0.3 points. Overall, both options remained in healthy expansion for the month.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Jun
2015
Feb
2016
Mar
2016
Apr
2016
May
2016
Jun
2016
GDP-Weighted Index 58.256.655.157.756.956.9
Free-Weighted Index57.356.955.157.357.557.2

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2013 – 2016

PCI Time Series Graph